The slump in global crude prices over the past year has cut the Iraqi government’s income even as it battles Islamic extremists that have seized parts of the country. That risks sidetracking Iraq’s efforts, after decades of conflict and sanctions that choked investment, to boost crude production with the help of international companies.
Brent crude, a global benchmark, dropped about 50 percent last year. It was trading at $61.63 a barrel on Wednesday.
Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, pumped 3.34 million barrels a day in March, state-run Oil Marketing Co. said April 16. The country, which pumped about 2.4 million barrels daily by the end of 2010, plans to boost capacity to 6 million barrels in 2018.
Oil Payments
The international companies working toward that goal are in talks with the Iraqi government about their field development plans, Townshend said at the Middle East Petroleum & Gas Conference in Abu Dhabi on Monday. The companies are reviewing their plans to ensure they will be paid by the government, Al-Jebouri said at the same event.
“That will lead to postponement in production growth,” Al-Jebouri said.
Iraq owes the companies about $9 billion for work done in 2014 and about $18 billion this year, the International Energy Agency said in its monthly report released April 15.
Iraq’s payments to BP for work it’s done in the country have been “picking up over the last couple of months,” Townshend said. Companies producing oil in Iraq have the choice of being paid in cash or by receiving barrels of crude, he said. BP has been taking greater amounts of oil from both Iraq’s southern and northern fields, Townshend said.
BP is the operator of the Rumaila field, Iraq’s largest deposit. Lukoil, the operator at the West Qurna-2 oil field, will invest $42 billion in developing the field, which has 35 billion barrels of oil in place, Al-Jebouri said.
BobInget on Wed, 22nd Apr 2015 12:31 pm
Here, we see an article about crude oil with not a mention of the terrible war within and without
Iraq’s borders over 10 years.
Kinda a switch-a-roo on war reporting never using the ‘o’ word.
lookie cheer: https://www.greenleft.org.au/node/58785
It’s like the words ‘oil’ and ‘war’ don’t go together like death and taxes. Sure, we can write thousands of articles w/o mentioning
the ‘d’ or the ‘t’ word. Just don’t tell us either
are avoidable.
Oh BTW, Saudi Arabian ‘airstrikes’ (on Yemen) resumed after an overnight pause.
I’m guessing, a few Saudis are having deep misgivings on this endless war.
Breathe easier chicken hawks, your side won this round. Remember, this is a thirty year’s war.
President Bush’s now President Obama’s,
next perhaps President Clinton’s war has ‘only’
been ongoing for ten years with twenty to go.
If only the lazy assed press would more often make the connection to resource collection as ‘motive’ (most crimes have motive) for shorting markets, (for profit) attacking defenseless 3rd world nations with billion dollar weapons.
For one thing ‘it’s really bad taste’ to imitate Israeli or US ‘Collective Punishment’ or ‘Preemptive War’ before sustaining even an
attack by children throwing stones or at best
homemade, primitive missiles.
I’ve said enough. It’s your turn.
BobInget on Wed, 22nd Apr 2015 1:10 pm
I need help.
Is everyone in ‘power’ insane or powerless me?
Israel sells and delivers arms to Ukrainian separatists. President Putin fills a long standing order from Iran for defensive SA missiles, S-300.
Israel turns around and threatens to attack Iran if that anti missile system is ever deployed.
Why? Some sane interested party might ask..
Well, if Iran protects itself from Israeli or US aggression, Iran is at fault. Do I have that right?
Or, is there another reason?
If you lock your doors when leaving you hope your home is not robbed.
If you install hardened steel doors and bars on windows, what then? Does this entitle house breakers who take offense at your ideas to sue, threaten to attack you for taking extra precautions?
The US, Saudi Arabia and Israel (all who have nuclear weapons access) expressly forbid Iran from defending its property against destruction or constructing nuclear weapons of their own.
(do I have this right?)
When Pakistan, home to Osama Bin Laden,
came out with a Saudi financed, “Islamic Bomb”
I don’t recall any threats by my country or Israel on Pakistani severity.
Help! Tell me the likes of John Bolten isn’t running for President.
Tell me, several US Senators aren’t calling for ‘limited preemptive strikes’ on Iran.
Tell me, what would any US president do if
Iran threatened us so?
joe on Wed, 22nd Apr 2015 1:13 pm
Wow. The organisational relationship is so clear. BP come along and do ‘work’ and Iraq pays BP for the privilege. Cash or Oil, they both represent oil as Iraq must sell oil to make the cash to pay cash. By taking oil its as if Iraq is saying ‘f**k you, you sell it’. BP must be mad about that. BP is getting free oil from Iraq and if the Iraqis say anything I would imagine that ISIS would find themselves with new CIA/Saudi/Qatari friends with another billion to give them.
BobInget on Wed, 22nd Apr 2015 1:46 pm
Evidence mounts on Saudi internal disagreements around bombing Yemen.
http://www.al-monitor.com/pulse/originals/2015/04/saudi-arabia-elite-yemen-operation-decisive-storm.html?utm_source=Al-Monitor+Newsletter+%5BEnglish%5D&utm_campaign=a0d7587bc8-April_22_2015&utm_medium=email&utm_term=0_28264b27a0-a0d7587bc8-102439653
This is only the beginning.
Bombing a fellow Muslim nation for no cause
will bring down the House of Cards, I mean
House of Saud.